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If You Thought 2008 Was Bad...
Over the
weekend it was announced that the European Emergency fund may not be large
enough to bailout all of the country’s who are bankrupt in Europe. This is
really not a surprise.
Back in 2010
when the bailout fund was first announced I said it would prove to be another “Paulson’s
bazooka” effort (in reference to Hank Paulson’s 2008 claim that a blank check
to deal with Fannie/ Freddie would be the equivalent of a “bazooka” that would
somehow solve those firms’ problems).
The European
emergency fund is the exact same idea: that throwing around enough money can
solve a debt problem. It’s the big lie: something politicians hope will come
true if they say it enough times and loud enough.
However,
anyone with a working brain knows there are only two (maybe three) ways to deal
with debt: pay it off or default (or some combination of the two). The
politicians do not want to admit this because it would mean admitting that they
have no clue and that they’ve wasted TRILLIONS of Dollars worth of money.
So here we
are, the first wave of the GREAT CRISIS was dealt with by transferring private
sector debt onto the public’s balance sheet. Now the second round is hitting
and the public sector needs to be bailed out.
So who’s
going to do it?
The answer:
no one.
Sovereign
nations will default whether it be
Greece, Italy, Spain, OR the US. There is no way we’ll be paying our debts off.
The only reason we haven’t already seen defaults is because the banks won’t
take a haircut on their bond holdings.
Politicians who
have all been bought out by the banks have fallen for this charade so far. But
it won’t last much longer. Banks may get you elected… but they can’t keep you
safe from a populace that is rioting outside your door. So the banks will all
be taking a BIG hit in the future.
This in turn
will kick off another 2008 episode as all the over-leveraged players (read:
EVERYONE) will have to sell positions to meet margin/ redemption calls.
However, this time around we’ll also see civil unrest as people lose their
social safety nets (unemployment, social security, etc).
What will
follow will be the equivalent of 2008 all over again, along with food
shortages, civil unrest, outbreaks in crime, bank holidays, and the like. It
will, in short, be like what’s going on in the Middle East today (though NATO
won’t be bombing us).
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Why would there be civil unrest? Why wouldn't Social Security and other entitlements be paid? The Treasury can simply write checks, even gold bugs will accept a Treasury check.
I can see the banks being folded, I can see depositors taking hits if they have large amounts of cash in a bank. That's why there are lots of banks.
Bailing out the boyz @ the bottom is a lot cheaper than bailing the banks. How much does a few months Social cost? Less than it cost to bail out Fannie.
The debt situation seems to be emerging from the confusion. A lot of US debt will be swapped for 'high value' securities (a couple of gold coins) and forgotten about. Simply forgotten about forever since the originators/bene's are dead. Baby Boomers will be given the choice of a lump sum payment in some kind of security in lieu of longer term payouts. A lot will take the sum and add it to their savings. Healthcare will be crammed into a single payer w/ few options but cheap for the govt. to operate. This will become the New Medicare. Insurance companies and banks will get screwed but peeps won't complain. Operators will have been bought off.
Peeps in the US will start farming for real with the urgency of the devil behind them. Carz will be used for target practice for RPGs and other goodies that peeps will 'allow themselves' to own. Most disputes will be over land use. 'Bright green lawns' and covenants will disappear. There will be no such thing as a 'gated community' If it has farmable land, it will be put to productive use. Malcontents will face the chopping block, literally.
Every patch of arable land in the US will have something growing on it that people can eat. Farming will be tough b/c most soils are ruined, non-fertile, scraped off or paved over. Much effort will be made to liberate soils from under parking lots, highways and unused buildings. Most won't know how to farm and in this TV won't be any help. People will starve in the US, with much resentment toward 'biofuels'.
Expert 'master farmers' will be the new celebrities. New World Order: contribute to our community positively or else! A chopping block with an axe next to it would be enough to enforce order.
Get ready for the sound of roosters all night long! They're loud.
Reactors will be a real problem as operators go broke and simply abandon them to blow up/melt down. Large areas of the country will be uninhabitable, some of which will be prime farmland.
New York will be different: energy constraints mean useless skyscrapers.
Also 'trendy': hard currency, sailing ships, ecology show trials and executions, an explosion of decorative arts and architecture. Funny what people do with time on their hands.
Right, Steve...this is how it would go if all were rational actors....too bad this is not the case. When the Universal Ponzi collapses, look for 15-20 state secessions - Texas #1, followed by others - then Civil War, Race war, rural vs. urban etc. I wouldn't be surprised to see a 50% drop in US/global population w/in the next few years. It'll be good for the planet.
Although succession is appealing it is unlikely given the current situations. The feds can run deficits and funnel billions of dollars to states through various mechanisms. Although Perry can spout off about succession he knows full well the financial impact to the state would be immediate and painful as soon as the feds withdraw their funds.
No big deal. All the Fed needs is a little ????.
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that "barbaric metal' is now way above the S&P..soon to be higher per ounce then the Dow.....
LMAO!
"It will, in short, be like what’s going on in the Middle East today (though NATO won’t be bombing us)."
Don't count on that. If American NORTHCOM troops don't want to shoot their relatives, they may bring in some troops from say, Turkey. Besides, the Argentina bankers actually dropped bombs from airplanes on Buenos Aires a few decades ago. Never underestimate a banker. I am not even going to go to WTC7 right now.
What is the possibility of a world wide reset - every country, every person?
100%, but not in any orderly way.
Chuck's book 'Fight Club' was onto something . . .
I have my check to you written out. Where should I send it?
Hoodwinking or exterminating the creditor is also possible.
One way to solve this debt crisis for a couple of generations:
Guillotine
An 21st century version of "The Terror", the bankers are "Enemies of the Révolution"
Yeah there will be a default, and yeah there will be pain.
But the sun will still rise.
This poem sounds like it was written about today...yet its author penned it in 1941...the more things change.
Be Angry At The Sun Robinson Jeffers That public men publish falsehoods Is nothing new. That America must accept Like the historical republics corruption and empire Has been known for years. Be angry at the sun for setting If these things anger you. Watch the wheel slope and turn, They are all bound on the wheel, these people, those warriors. This republic, Europe, Asia. Observe them gesticulating, Observe them going down. The gang serves lies, the passionate Man plays his part; the cold passion for truth Hunts in no pack. You are not Catullus, you know, To lampoon these crude sketches of Caesar. You are far From Dante's feet, but even farther from his dirty Political hatreds. Let boys want pleasure, and men Struggle for power, and women perhaps for fame, And the servile to serve a Leader and the dupes to be duped. Yours is not theirs.Same old song by Phoenix. "The sky is falling." Meanwhile, the Dow is up 90% in the last two years, the Dollar is rising and govt bond rates are near an all-time low. All of you people expecting an economic collapse, you will be disappointed. The U.S. will not hyperinflate. Not even close.
And where the fuck would the market be without daily fucking POMO ass lips?
maybe you havent noticed conehead, but pomo is at a trickle....
ballsac
well in my book your meaningless stuff is starting to get way over the top and is rather devoid of analysis. I kknow put you in almost teh same uselless catagory as the mad hedge fund trader.
Sounds a tad depressing-but here's a riddle: how is this debt crisis really different from 10 years ago, 20 years ago? Its all about trust, when its gone its truly dog-eat-dog.
So put on a happy face and be optimistic-oh and get that magic report the author keeps pitching that tells you how to prosper while the basic institutions in society collapse around you. Should be good for a hoot. (Did Nero write one for Rome?)
Signed,
A real cynic
I can't afford any more of these 100% free reports.
wolf,.....
Blah blah and blah de blah and furthermore blah de blah de blah but please protect yourself by BUYING MY SUBSCRIPTION.
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If the banks take the haircut, it's the people who will take their money out.
Also, a lot of pensions have money invested and they guarantee the min. return over here so they would go bankrupt and the mess would be even bigger Times 5!
The people can't take their money out they are in debt to the tune of 160% of income.
What makes you think NATO won't be bombing you?
Maybe it will not be NATO, but it may be the UN.
Rest assured, someone will be bombing us.
different day, same shit from phoenix.
state the obvious, then... buy my subscription, bitchez.
im going to assume it is 17 pages worth of "buy gold/silver" or "buy freeze dried foods". both good advice, but i just gave it to you here, free, in 3 sentences.
Gold and Silver Bitchez...